Windows 8: a carpet without the magic?

It is finally here – this week Microsoft officially launched its long-awaited Windows 8 software, which experts say attempts to bridge the gap between personal computers and the fast-growing number of tablets, with its touch-enabled interface. The launch comes amid a number of other tablet offerings ahead of the Christmas shopping spree, but just how different is it?

Microsoft describes Windows 8 as a “revolutionary” overhaul of its Windows computer software and say it is designed for a new generation of touchscreen tablet computers and laptops. Ageing chief executive Steve Ballmer says Windows 8 PCs will be the best PCs ever. And can you blame him, seeing that the world dominance of Microsoft has been so fiercely challenged by Apple and Google?

It is no surprise to read that Microsoft now seriously faces such a challenge to its survival. Ballmer says Windows 8 “shatters perceptions of what a PC really is” and is a “bold and innovative” break from past versions of Windows. If you are wondering why you might want to upgrade your Windows 7 to Windows 8, Microsoft thinks it has given a few good reasons.

During the Windows 8 launch, its promoters pointed out that upgrading a Windows 7 PC offers a number of immediate benefits – including better battery life (13 per cent), faster boot times (up to 45 per cent), and a smaller memory footprint. Microsoft claims it has been testing the system for months and that most people can manage to learn it without difficulty. Microsoft wants everyone to know that its new Start Screen is not just a shell on top of Windows 7, but critics say using the operating system immediately sends mixed and confusing messages. When you start the software you will enjoy a magic carpet full of touchable tiles.

Research firm Gartner predicts competition will hot up with the arrival of Microsoft in the tablet arena as it forecasts that by the end of 2016, there will be 2.3 billion com- puters, tablets and smartphones using Android software, compared with 2.28 billion Windows devices. That is quite a good performance ending with 1.5 billion Windows devices by the end of this year, against 608 million using Android. Microsoft has long dominated PC units, with something more than 95 per cent of sales, but it was recently overtaken by Apple’s Mac products, leaving Microsoft’s share to shrink drastically to about 30 per cent this year.

Some commentators argue that Windows 8 is an attempt to replicate the magic that rivals such as Apple and Google have gained from their customers. Apple sold 14 million iPad touch-screen tablet computers in the most recent quarter, a 26 per cent year-over-year increase, but down 17 per cent sequentially and below analysts’ expectations of about 15 million units.

Apple recently unveiled a mini iPad tablet and updates to its larger iPad and Macintosh computers, as the company seeks to prove it is still ahead of the competition. Again, Amazon.com and Barnes & Noble, makers of the seven-inch Kindle Fire and Nook Tablet, are coming out with larger versions. Meanwhile, Amazon.com recently disappointed investors by announcing an operating loss of $28 million in the third quarter. Contributing to the loss was the company’s decision to discount the price of the Kindle Fire tablet, foregoing any profit, in the hope of selling books, videos and other content for the device.

Apple’s amazing financial strength is due to the success of the iPhone, (which accounts for two-thirds of its revenue) and it is ironic that this is the same company that Microsoft stepped in to save from bankruptcy in 1996. But grey clouds are on the horizon for Apple, as it sold fewer iPads in the fourth quarter than analysts had expected. It also warned that sales and profit in the next quarter will be more modest than in the past because of rising costs. Undeterred, chief executive Tim Cook said: “We’re very proud to end a fantastic fiscal year with a record September, as we are entering the market again with the best iPhone, iPad, Mac and iPod products, and we remain very confident of our new product pipeline.”

In order to examine this assertion and comment on the veracity of Windows’ bold prediction that they will again dominate the device market, let us see what’s on offer. Microsoft’s tablet computer, Surface, is formidable but – quoting PC critics – it does not compete with the iPad or the Kindle for reading because its long 10.6in screen and considerable weight means it soon becomes uncomfortable. What else went wrong? Surface comes with two high-definition cameras, described as not being all that powerful and with some reviews claiming the pictures are grainy. Another criticism is about the lack of apps: its late arrival on the tablet scene means few programmers have created content for the Windows 8 interface. As a general comment, it is easy to criticise its 4,000 available apps, compared to 275,000 for Apple’s iPad. Looking at its specs, one compares its low resolution (1,366 by 768 pixels compared to 2,048 by 1,536 pixels for the iPad), making small type harder to use.

But one cannot be too critical of such an innovative product. Really and truly a lot of serious effort has gone into making Windows 8 a success. It has taken a radical makeover of previous versions of the software and is designed for a new generation of touchscreen tablet computers and laptops. Sadly, the new tablet Surface – which is a crucial part of the software giant’s strategy to survive the decline of the PC – has been given the thumbs down by some reviewers. Others, who have tested Surface in more detail, have praised its touchscreen interface but are not urging users to rush out and buy the $599 (€463) with its flimsy touch keyboard cover – which doubles up as a functional Qwerty keyboard and has drawn some criticism.

To be fair, the cover is smart enough to know when it’s been flipped under the tablet and its buttons will cease functioning in order to prevent any unwanted typing. Touch Cover is a soft, felt-like material that covers the screen when folded over it and makes it feel perfect when being carried in your hands.

Moving on to its main competitor, we notice how Apple – previously guided by Steve Jobs’ brilliant leadership – has set the tone for the post-PC revolution, creating iTunes and the App Store, giving us the iPhone and the iPad, bridging cloud with desktop through OS X, and others. It is no exaggeration to say that Apple turned the mobile device market on its head in 2007 with the launch of the iPhone and followed this success by leading the vanguard of its MacBook Air.Relative to Windows.

But Apple’s strengths are also its weaknesses. The overwhelming success of its unique operating system iOS cannot be denied – but there is evidence that the desirability of the iPhone 5 is being challenged by cheaper and larger screen devices offered by Android. The latter, which only came on to the market in 2008, has risen fast to be the dominant smartphone platform, controlling two-thirds of that market. It has taken the number two spot in the fastgrowing tablet computer market, after Apple. It is no consolation to recall how worldwide shipments of personal computers fell by over eight per cent in the third quarter, the steepest decline since 2001, as more consumers take to tablets and smartphones for more basic computing. Apple has had about 70 per cent of the entire tablet market up to now, but the launch in the summer of Google’s 7in Nexus 7 tablet – estimated to have sold around a million in three months – and of the Kindle Fire, launched in the US in October 2011, has dampened growth for Apple’s own tablet.

To conclude, Microsoft has now gallantly unveiled Windows 8 as a radical reinvention of the world’s best-selling computer operating system for the touchscreen age, in what many believe could be chief executive Steven Ballmer’s last stand.

This Microsoft veteran wants his legacy to be monumental and to give the titan of the already fading PC era a bright future to challenge today’s smartphones and tablets. We all wish him well. At the grand launch last week he promised a “re-imagined” software experience that “shatters perceptions of what a PC really is”. Let us hope that the magic carpet works this time. The writer is a partner in audit and

business advisory firm PKF

gmm@pkfmalta.com